Vautin v BY Winddown, Inc (No 2)

The case of Vautin v BY Winddown, Inc (No 2) involved Bertram, an Italian boat builder, and Eagle Yachts, its exclusive dealer in Australia. Bertram sought to have the proceedings against it stayed on the grounds that it was not subject to the jurisdiction of the Australian courts. The dispute centred around whether Bertram carried on business in Australia under the Competition and Consumer Act 2010 (Cth) due to its exclusive dealer agreement with Eagle Yachts. The agreement required Eagle Yachts to market Bertram's yachts using its materials, provide a limited warranty to retail consumers, and offer service facilities in Australia for Bertram's products.

The court was required to determine if Bertram's actions under the exclusive dealer agreement constituted carrying on business in Australia and whether the Australian courts had jurisdiction over Bertram. Additionally, the court had to consider whether the proceedings should be stayed due to the presence of an exclusive jurisdiction clause in the limited warranty and the availability of equivalent remedies under foreign law. The court also needed to assess whether Australia was a clearly inappropriate forum and whether there was a possibility of duplicated proceedings.

The court rejected Bertram's argument that the discretionary power under r 10.43 of the Federal Court Rules 2011 required a prima facie case against all parties, including those to be served outside the jurisdiction. The court held that the power was activated if the applicant satisfied the court of the jurisdiction, the nature of the proceeding, and the existence of a prima facie case for the relief claimed. The court found that Bertram's activities under the exclusive dealer agreement with Eagle Yachts constituted carrying on business in Australia, thereby granting the Australian courts jurisdiction over the matter. Consequently, the court dismissed Bertram's interlocutory application for a stay of proceedings, ordering that Eagle Yachts pay the costs of the interlocutory hearing.